Carnival Stock Testing Price Floor – Buy Now?
Carnival (CCL) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($23.52 – $26.00), levels from which it has bounced meaningfully before. In the last 10 years, Carnival stock received buying interest at this level 3 times and subsequently went on to generate 19.6% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 3/29/2021 | 14.3% | 11 |
| 5/7/2021 | 17.0% | 26 |
| 6/25/2025 | 27.5% | 64 |
Yet, a support zone alone isn’t enough; rebounds are more likely when fundamentals, sentiment, and market conditions line up. How does that look for CCL?
Rebound likely: strong bookings, debt reduction, analyst targets
Carnival’s Q3 2025 results exceeded expectations, posting record revenue, net income, and customer deposits, signaling strong demand. Despite Monday’s dip from cautious macroeconomic commentary and Caribbean capacity concerns, the cruise industry projects record passenger growth through 2026. Bookings for 2026 are already half-filled at higher prices. Analysts maintain “Strong Buy” to “Moderate Buy” ratings with average price targets suggesting substantial upside. Debt reduction efforts are progressing, enhancing financial health.
- Get Paid 8.6% to Buy PYPL at a 30% Discount – Here’s How
- What Could Light a Fire Under Lam Research Stock
- 3 Reasons Advanced Micro Devices Stock Could Tumble
- Could Coursera Stock’s Cash Flow Spark the Next Rally?
- High Margins, 44% Discount: Buy ServiceNow Stock Now
- Is the Market Overlooking Copart Stock’s Next Move?
How Do CCL Financials Look Right Now?
- Revenue Growth: 7.1% LTM and 45.9% last 3-year average.
- Cash Generation: Nearly 11.1% free cash flow margin and 16.4% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for CCL was 7.1%.
- Valuation: CCL stock trades at a PE multiple of 12.3
| CCL | S&P Median | |
|---|---|---|
| Sector | Consumer Discretionary | – |
| Industry | Hotels, Resorts & Cruise Lines | – |
| PE Ratio | 12.3 | 23.1 |
|
|
||
| LTM* Revenue Growth | 7.1% | 6.1% |
| 3Y Average Annual Revenue Growth | 45.9% | 5.4% |
| Min Annual Revenue Growth Last 3Y | 7.1% | 0.2% |
|
|
||
| LTM* Operating Margin | 16.4% | 18.8% |
| 3Y Average Operating Margin | 10.8% | 18.2% |
| LTM* Free Cash Flow Margin | 11.1% | 13.5% |
*LTM: Last Twelve Months | For more details on CCL fundamentals, read Buy or Sell CCL Stock.
And What If The Support Breaks?
CCL’s stock isn’t immune to big drops, even with good fundamentals. It plunged nearly 65% in the Dot-Com Bubble and almost 69% during the Global Financial Crisis. The 2018 correction was milder but still knocked it down about 41%. More recently, the Covid pandemic saw a massive 84% tumble, and the inflation shock wiped out close to 80%. So, despite any positive outlook, CCL has shown it can take serious hits when markets turn.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read CCL Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
Still not sure about CCL stock? Consider the portfolio approach.
Stock Picking Falls Short Against Multi Asset Portfolios
Markets move differently but a mix of assets smooths volatility. A multi asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices